GameStop to the moon | Currency News | Financial and Business News
The GameStop phenomenon kicked off a new era in the stock market and introduced the world to the concept of the meme stock.
A new generation of retail traders – mobilized on Reddit, Twitter, and StockTwits – made headlines in January 2021 when they caused shares of ailing video-game retailer GameStop to skyrocket far beyond what analysts saw as the fundamental value of the company.
The army of retail traders drove the share price from low double digits in early January to a record high close of $347.51 on January 27. Analysts scoffed at the high-flying share price, saying it went against everything they knew about picking stocks based on fundamentals or financial analysis.
But traders were focused on a bigger goal – something they called the “mother of all short squeezes.” The Wall Street Bets crowd hoped to deal a blow to short sellers betting against the stock. And they did just that. The massive short squeeze…